Fakeouts are incredibly more common than true breakouts. Generally, they offer amazing and cost effective entry. Often times, tight stop loss can be used and price moves steeply in the direction of the main trend. Therefore, trailing stop can be employed better than with other signals.

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This forex strategy uses advanced trailing stop, protecting the profits after each candle that closes in profit. Target profit can therefore outweighs loss up to 20x. Forex strategy was thoroughly tested and we provide xpert advisor trading it.

Strategy was tested on 1H EURUSD data from 01.012013 to 01.012016.

Used indicators:

• Simple Moving averages 500 and 250. The main purpose of those two indicator is to identify the main trend driving the market. Slow MA trending above fast signalizes downtrend and vice versa for uptrend. Entering the trade in the direction of main trend is extremely important.

• Bollinger bands (25): BB will draw a volatility sensitive tunnel. Price touching either of its boundaries will be automatically considered to be a fakeout, but it will be traded only in the direction of main trend.

Forex strategy rules

SELL:

MA 250 trending below MA 500 – downtrend. We will enter short trades only.

Price touches upper BB line. We enter the trade short on candle close placing stop loss 60 pips above the entry. As the position advances in profit we place SL at previous candle high +10 pips.

Profit is taken only when price hits trailing stop.

BUY:

MA 250 trending above MA 500 – uptrend. We will enter long trades only.

Price touches bottom BB line. We enter the trade long on candle close placing stop loss 60 pips below the entry. As the position advances in profit we place SL at previous candle high +10 pips.

Profit is taken only when price hits trailing stop.

We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

Dislaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.

TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.